"We are taking a measured approach in safeguarding price stability conducive to sustainable economic growth," Remolona added.
Moody's cited the Philippines' economic reforms, fiscal consolidation, and strong macroeconomic fundamentals as key factors in its decision.
According to Moody’s, the passage of reforms over the past several years to liberalize the Philippine economy will support medium-term growth potential by supporting a business-friendly environment and attracting foreign investments.
The Philippine economy showed resilience with a 6.3% year-on-year gross domestic product (GDP) growth in the second quarter of 2024, reported by the Philippine Statistics Authority.
Additionally, foreign direct investment (FDI) net inflows from January to May 2024 rose by 15.8% to $4 billion compared to the same period in 2023.
Moody's expects FDI to continue growing in 2024-2025, driven by interest in the energy, manufacturing, and information sectors.
The Marcos administration's infrastructure buildup initiative, aiming to boost infrastructure investment to 5% of GDP annually, is also set to close the infrastructure gap.
